Andrew Peller Limited Reports Financial Results for Third Quarter of Fiscal 2026

GRIMSBY, Ontario, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Andrew Peller Limited (TSX: ADW.A / ADW.B) (“APL” or the “Company”) today announced results for the three and nine months ended December 31, 2025. All amounts are expressed in Canadian dollars unless otherwise stated.

THIRD QUARTER 2026 HIGHLIGHTS

• Revenue was $108.8 million, up from $105.4 million in Q3 2025;
• Gross margin of 41.8%, up from 40.2% in the prior year;
• EBITA increased by 6.1% to $19.7 million, from $18.5 million in Q3 2025; and
• Net earnings improved to $7.9 million, compared to $7.7 million in Q3 2025.
  
  

YTD 2026 HIGHLIGHTS

• Revenue was $313.5 million, compared with $314.1 million in the prior year;
• Gross margin of 43.3%, up from 40.4% in the prior year;
• EBITA increased to $57.1 million, from $49.4 million in the prior year;
• Net earnings grew to $21.4 million ($0.50 per Class A Share), compared to $11.9 million ($0.28 per Class A Share) in the prior year; and
• Dividends of $0.185 per Class A Share and $0.161 per Class B Share.
  
  

“Highlighted by top-line growth and continued expansion in our margins and earnings, it was another strong quarter for the Company. These results reflect positive trends across multiple trade channels and regions, including a strong quarter in Western Canada and sustained momentum in emerging channels in Ontario,” said Paul Dubkowski, Chief Executive Officer. “With our strong balance sheet and continued momentum, we are making targeted investments in growth aimed at continuing to gain share in core markets, while positioning the Company for success in high-growth product segments.”

Financial Highlights
^{(Financial Statements and the Company’s Management Discussion and Analysis for the period can be obtained on the Company’s web site at ir.andrewpeller.com)}

⁽¹⁾ Please refer to the Company’s MD&A concerning “Non-IFRS Measures”

Financial Review 

Revenue for the three months ended December 31, 2025 increased by 3.3% compared to the same period in the prior year, driven primarily by strong performance in Western Canada and growth in wine club sales. This increase is partially offset by expected softness in the Company’s owned retail stores as the Ontario retail market continues to evolve. Revenue for the nine months ended December 31, 2025 was relatively consistent with the prior year as the Company was able to offset the benefit from the LCBO strike in the second quarter of fiscal 2025. Several of the Company’s well-established trade channels delivered strong performance, particularly sales to third party restaurants and hospitality locations. Performance in grocery and big-box stores also remained strong during the continued evolution of the Ontario retail market, and traffic at the Company’s estate properties continued to grow. These gains were offset by some softness in the Company’s owned retail stores and its personal winemaking business.

Gross margin as a percentage of revenue increased to 41.8% from 40.2% for the three months ended December 31, 2025, and to 43.3% from 40.4% for the nine months ended December 31, 2025. The improvement was driven by lower input costs including glass bottles and inbound freight, resulting from the Company’s ongoing cost savings programs. This favorability was partially offset by additional distribution costs incurred to serve the evolving Ontario retail market. Margin also improved due to the Ontario Grape Support Program (“OGSP”) which contributed $2.1 million and $6.6 million in the three and nine month periods ended December 31, 2025, respectively. This program was not in effect during the comparable periods in fiscal 2025.

As a percentage of revenue, selling and administrative expenses increased to 23.7% from 22.6% for the three months ended December 31, 2025 and to 25.1% from 24.7% for the nine months ended December 31, 2025. The increase reflects an increase in investments made for advertising and promotion expenses for innovation and to serve the evolving Ontario retail market.

EBITA was $19.7 million in the third quarter of fiscal 2026, up 6.1% from $18.5 million in the third quarter of fiscal 2025. EBITA was $57.1 million for the nine months ended December 31, 2025, an increase of 15.6% compared with $49.4 million in the prior year.

Interest expense for the three and nine months ended December 31, 2025 decreased by 25.8% and 22.8% respectively, compared to prior year, due to lower average debt levels and reduced interest rates.

The Company recorded a net unrealized non-cash gain in the first nine months of fiscal 2026 of $0.9 million related to mark-to-market adjustments on interest rate swaps and foreign exchange contracts compared to a loss of $1.2 million in prior year. The Company has elected not to apply hedge accounting and accordingly the change in fair value of these financial instruments is reflected in the Company’s consolidated statement of earnings each reporting period. These instruments are considered to be effective economic hedges and are expected to mitigate the short-term volatility of changing foreign exchange and interest rates.

The Company generated net earnings of $7.9 million ($0.18 per Class A share) for the third quarter of fiscal 2026 compared to $7.7 million ($0.18 per Class A share) in the third quarter of the prior year and net earnings of $21.4 million ($0.50 per Class A share) for the nine months ended December 31, 2025 compared to $11.9 million ($0.28 per Class A share) in the prior year.

Investor Conference Call
The Company will hold conference call to discuss the results on Wednesday, February 11, 2026 at 10:00 a.m. ET. Paul Dubkowski, CEO, Renee Cauchi, CFO and Patrick O’Brien, President and CCO, will host the call, with a question and answer period following management’s presentation.

About Andrew Peller Limited        
Andrew Peller Limited is one of Canada’s leading producers and marketers of quality wines and craft beverage alcohol products. The Company’s award-winning premium and ultra-premium Vintners’ Quality Alliance brands include Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery, Raven Conspiracy, and Conviction. Complementing these premium brands are a number of popularly priced varietal offerings, wine-based liqueurs, craft ciders, and craft spirits. The Company owns and operates 101 well-positioned independent retail locations in Ontario under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names. The Company also operates Andrew Peller Import Agency and The Small Winemaker’s Collection Inc., importers and marketing agents of premium wines from around the world. With a focus on serving the needs of all wine consumers, the Company produces and markets premium personal winemaking products through its wholly owned subsidiary, Global Vintners Inc., the recognized leader in personal winemaking products. More information about the Company can be found at ir.andrewpeller.com.

The Company utilizes EBITA (defined as earnings before interest, amortization, loss on debt extinguishment and financing fees, net unrealized gains and losses on derivative financial instruments, other (income) expenses, and income taxes) to measure its financial performance. EBITA is not a recognized measure under IFRS. Management believes that EBITA is a useful supplemental measure to net earnings, as it provides readers with an indication of earnings available for investment prior to debt service, capital expenditures, and income taxes, as well as provides an indication of recurring earnings compared to prior periods. Readers are cautioned that EBITA should not be construed as an alternative to net earnings determined in accordance with IFRS as indicators of the Company’s performance or to cash flows from operating, investing, and financing activities as a measure of liquidity and cash flows. The Company also utilizes gross margin (defined as sales less cost of goods sold, excluding amortization). The Company’s method of calculating EBITA and gross margin may differ from the methods used by other companies and, accordingly, may not be comparable to measures used by other companies.

Andrew Peller Limited common shares trade on the Toronto Stock Exchange (symbols ADW.A and ADW.B).

FORWARD-LOOKING INFORMATION
Certain statements in this news release may contain “forward-looking statements” within the meaning of applicable securities laws including the “safe harbour provisions” of the Securities Act (Ontario) with respect to APL and its subsidiaries. Such statements include, but are not limited to, statements about the growth of the business; its launch of new premium wines and craft beverage alcohol products; sales trends in foreign markets; its supply of domestically grown grapes; and current economic conditions. These statements are subject to certain risks, assumptions, and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. The words “believe”, “plan”, “intend”, “estimate”, “expect”, or “anticipate”, and similar expressions, as well as future or conditional verbs such as “will”, “should”, “would”, “could”, and similar verbs often identify forward-looking statements. We have based these forward-looking statements on our current views with respect to future events and financial performance. With respect to forward-looking statements contained in this news release, the Company has made assumptions and applied certain factors regarding, among other things: future grape, glass bottle, and wine and spirit prices; its ability to obtain grapes, imported wine, glass, and other raw materials; fluctuations in foreign currency exchange rates; its ability to market products successfully to its anticipated customers; the trade balance within the domestic Canadian and international wine markets; market trends; reliance on key personnel; protection of its intellectual property rights; the economic environment; the regulatory requirements regarding producing, marketing, advertising, and labelling of its products; the regulation of liquor distribution and retailing in Ontario; the application of federal and provincial environmental laws; and the impact of increasing competition.

These forward-looking statements are also subject to the risks and uncertainties discussed in this news release, in the “Risks and Uncertainties” section and elsewhere in the Company’s MD&A and other risks detailed from time to time in the publicly filed disclosure documents of Andrew Peller Limited which are available at www.sedarplus.ca. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and assumptions which could cause actual results to differ materially from those conclusions, forecasts, or projections anticipated in these forward-looking statements. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. The Company’s forward-looking statements are made only as of the date of this news release, and except as required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information, future events or circumstances or otherwise.

For more information, please contact:        

Craig Armitage
ir@andrewpeller.com

Source: Andrew Peller Limited

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